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1 year ago

Explain what debit and credit mean.

Business

1 answer:

xeze [42]1 year ago

6 0

Debits and credits are used in a company’s bookkeeping or or double-entry accounting.

Debits and credits are the bookkeeping entries that balance each other. Debits means all of the money coming into an account, while credits means all of the money going out of an account. When recording a transaction, every debit entry must have a corresponding credit entry of the same amount.

A debit entry is always kept on the left side of an entry. A debit increase asset or expense accounts, and decreases liability, revenue or equity accounts.A credit is always placed on the right side of an entry. It increases liability, revenue or equity accounts and decreases asset or expense accounts.

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Suppose the local market for legal services has an upward sloping supply curve, PL = 150 +0.0001QL where PL is the price of lega

Margaret [11]

Answer:

C) $50,000,000

Explanation:

The aggregate rent is the surplus earned by the lawyers for operating over their cost at this market equilibrium.

In the picture attached, the rent is showed graphically.

At PL=$250 per hour, the amount of demanded hours is QL=1,000,000.

The oportunity cost at a zero hours level is PL(0)=$150.

The rent can be calculated as:

$Rent=\frac{QL_{equil} x (PL_{equil}-PL_0)}{2}\\\\\\Rent=\frac{1,000,000*(250-150)}{2}= \frac{1,000,000*(100)}{2}=50,000,000$

The aggregate rent is $50,000,000.

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3 years ago

Read 2 more answers

Two major virtues of the market system are that it:

podryga [215]

The correct answer is allocates resources efficiently and allows economic freedom.

The market system of economics is one where economic decisions and the pricing of goods and services are guided solely by supply and demand and there is limited to no government interaction in the economy. Because of this, two major virtues of the market system are that it allocates resources efficiently and allows economic freedom.

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3 years ago

Company X sells their products exclusively to companies in the Y market. In estimating demand from their business customers, Com

skelet666 [1.2K]

Answer:

derived demand

Explanation:

Company X sells their products exclusively to companies in the Y market. In estimating demand from their business customers, Company X must understand that this demand is actually <u>derived demand</u>, which means that the demand for industrial products and services is driven by demand for consumer products and services.

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3 years ago

Ring Technology has a capital budget of $850,000, it wants to maintain a target capital structure of 35% debt and 65% equity, an

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Answer:

b. $ 952,500

Explanation:

The computation of the amount of the net income for earning to meet out the requirement is shown below:

Dividend = Net income - Target Equity ratio × Total capital budget

$400,000 = Net income - 0.65 × $850,000

$400,000 = Net income - $552,500

So, the net income is

= $400,000 + $552,500

= $952,500

Hence the Net income is $952,500

Therefore the correct option is b. $952,500

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3 years ago

Sheridan Co. purchased machinery that cost $2650000 on January 4, 2019. The entire cost was recorded as an expense. The machiner

Novay_Z [31]

Answer:

See below

Explanation:

Recording the entire cost as expense would have understated retained earnings by $2,650,000

Annual depreciation on machine = ( Purchase cost - Residual value ) / Useful life

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= $2,485,000 / 9

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Depreciation would have been recorded for $552,222 for 2 years had the machinery been corrected recorded I.e $276,111 × 2 = $552,222

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= $2,097,779

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3 years ago